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October 13, 2010

CMP to pay $4M penalty for complaints

By The Mainebiz News Staff

In a settlement with the Maine Office of the Public Advocate, Central Maine Power Co. has agreed to pay a $4 million penalty in response to higher-than-usual customer complaints in 2009.

The bulk of the penalty fee will flow to Maine ratepayers, with a portion going to some low-income customers unable to pay their bills due to the recession, according to a press release from the Maine Public Utilities Commission, which approved the settlement agreement yesterday. The penalty offsets inadequate service quality that resulted in more customer complaints last year, and could have been as high as $5 million, but was lessened to account for last year's economic conditions, according to the release.

CMP operates under an alternative rate plan, which includes benchmarks for quality and performance, and allows the company to be penalized if its customer complaint ratio rises above one complaint per thousand customers in a 12-month period.

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